In a significant strategic pivot, the Indian gaming and entertainment platform Zupee reportedly laid off 200 employees—approximately 40% of its workforce—on Friday, January 30, 2026.
The decision, announced by co-founder and CEO Dilsher Singh Malhi during a company town hall, marks the second phase of a larger restructuring effort. This brings the total number of job cuts at the company to nearly 370 over the past few months.
1. The Regulatory Catalyst: The RMG Ban
The layoffs are a direct consequence of the Promotion and Regulation of Online Gaming Act, 2025, which effectively banned paid real-money gaming (RMG) in India.
- Cost Rationalization: Primarily impacting the technology and customer support teams, this second round follows an earlier cut of 170 employees in September 2025.
- Industry Trend: Zupee joins other major players like MPL, Dream11, and WinZO, who have also had to downsize and restructure their monetization models following the legislative shift.
2. Strategic Pivot: Zupee Studio & Micro-Dramas
Zupee is transforming from a transaction-led gaming app into a broad digital entertainment ecosystem.
- Zupee Studio: The company’s new vertical focuses on short-form video content and micro-dramas (1–3 minute episodes). Genres include romance, drama, and thriller, specifically designed for mobile-first audiences in Tier 2 and Tier 3 cities.
- High Growth: The micro-drama market in India is projected to reach ₹4,000 crore by the end of 2026, growing at 40–50% annually.
- Protected Teams: Employees associated with the content vertical were reportedly unaffected by the layoffs, signaling its status as a core growth pillar.
3. The “100% Free-to-Play” Model
In November 2025, Zupee completed its transition to a completely free-to-play model to align with new regulations while maintaining its 200 million registered users.
- Flagship Titles: Popular games like Ludo Supreme, Snakes & Ladders Plus, and Carrom Ninja now feature zero entry fees.
- New Revenue Streams: The company is exploring ad-driven models, subscription-led “Zupee Plus” products, and branded micro-series to replace lost RMG revenue.
4. Support for Affected Employees
Zupee has committed to a comprehensive relief package for the 200 departing staff:
- Financial Aid: Severance pay extends up to six months for long-serving employees.
- Medical Support: Continued health insurance for the full policy term and access to a ₹1 crore medical assistance fund for emergencies.
- Career Assistance: Outplacement support and priority consideration for re-hiring once the business stabilizes.
Conclusion: A Cultural Shift
By pivoting to culturally rooted storytelling and free-to-play social gaming, Zupee is attempting to salvage its massive user base in a post-RMG world. While the 46% annual profit growth reported in FY24 (reaching ₹146 crore) is likely to see a major correction in FY25/26, the company’s bet on the $8 billion short-form video market represents its best path toward a sustainable, non-transactional future.
